The message from the labour market to policymakers is clear: interest rates need to be cut

There are significant implications from the latest unemployment figure showing a rise from 4.8% in August to 5.0% in September, not least for the 1.8 million people it directly affects.

- Phillip Inman

Rachel Reeves will be mulling over how to avoid depressing the economy and putting even more people out of work while raising tens of billions of pounds in extra tax in her upcoming budget.

So far this year the chancellor has found a way to talk about the need for growth without being much concerned for the swelling number of unemployed people. Businesses have complained about the rising costs of employment, but the jobless rate has climbed steadily and mostly under the radar.

This situation is unlikely to continue if the budget on 26 November weakens the incentives to employ people even more than April's rise in national insurance contributions, announced in last year's budget. A further chunky rise in the minimum wage next April, which is expected to be announced in the budget, is another factor that could translate into fewer jobs if the chancellor isn't careful.